Pacific Green Technologies Reports 59% Revenue Decline and $11.4 Million Net Loss for Nine Months Ending December 31, 2024

Pacific Green Technologies Inc. reported a significant decline in financial performance for the nine months ending December 31, 2024, compared to the same period in the previous fiscal year. Total revenues fell to $5.2 million, down 59% from $12.6 million in the prior year. The company experienced a net loss of $11.4 million, a stark contrast to the net income of $11.2 million reported for the same period in 2023. This downturn was attributed to reduced sales in both product and service segments, with product sales dropping to $840,000 from $8.4 million, and service revenues slightly increasing to $4.3 million from $4.3 million.

The company's balance sheet reflected a total asset increase to $36.5 million as of December 31, 2024, up from $28.5 million at the end of the previous fiscal year. However, total liabilities surged to $42.5 million, compared to $22.5 million in March 2024, primarily due to increased accounts payable and accrued liabilities, which rose to $12.5 million from $6.8 million. The stockholders' equity shifted to a deficit of $6.4 million, down from a positive equity of $5.3 million, indicating a challenging financial landscape for the company.

Strategically, Pacific Green Technologies has made significant organizational changes, including a realignment of its reportable segments to focus on Battery Energy Storage Systems (BESS) and Environmental Technologies. This restructuring aims to enhance operational efficiency and align with the company's growth strategy. Additionally, the company has been actively developing its project pipeline, particularly in Australia and Italy, with ongoing projects expected to reach the "Ready to Build" stage in 2025. The company has also entered into development service agreements for five Italian projects, which are anticipated to contribute to future revenue streams.

Operationally, the company reported a decrease in customer engagement, with total revenues from products and services significantly lower than in the previous year. The company is currently managing several projects under development, including the Portland Energy Park in Australia, which is set to be the largest BESS in the region. The company has also reclassified its property in Shanghai as assets held for sale, indicating a strategic move to optimize its asset portfolio. As of December 31, 2024, the company had cash and cash equivalents of $4.0 million, down from $13.1 million a year earlier, reflecting tighter liquidity conditions.

Looking ahead, Pacific Green Technologies is actively seeking to secure additional funding to support its ongoing projects and operational needs. Management is in discussions with potential lenders to establish a larger development loan facility, which is expected to enhance the company's ability to meet its obligations and accelerate project development. Despite the current challenges, the company remains optimistic about its future prospects, citing positive interest from lenders and the potential for significant cash generation from its project pipeline.